Planning to take a home loan? Don't choose lender on interest rate alone

Watch out for other charges like foreclosure fee

• Always negotiate the interest rate with your banker. If he does not reduce it, ask for a waiver on the processing fee. 
• Another parameter to consider is disbursal time. Ideally, it should be 10-15 days. Avoid lenders who take more time. 
• Also check the charges, especially the processing fee and the foreclosure charge. 
• One may consider going for a fixed-rate home loan when interest rates in the economy are low and you prefer a short tenure. 
• Keep evaluating your interest rate every six months to see if some other player is offering a better rate. You can save a lot of money by shifting.